CIMB Daily Fixed Income Commentary - 09 July 2014

Market Roundup

• US Treasuries posted decent gains as yields declined substantially along the long end of the curve, possibly due to the inflows from the stock market.
• Malaysian government bond market was seen with improved flows amounted to RM2 billion. MGS yields hovered at prior levels, while MGS Sep’21 and Jul’24 were well bidded. On the other hand, short dated GII Mar’15 and Sep’15 were also actively transacted.
• THB denominated bond yields dipped, particularly along the long end, as local players continued to show buying support. Meanwhile, LB196A and LB236A remained under the limelight of the players, each traded Bt3.5 and Bt3.1 billion throughout the day, while daily trading volume inched down to Bt10.0 billion from Bt10.6 billion. Apart from that, IRS curve shifted higher by 1-2bps on Tuesday.
• IDR denominated government bond market moved sideways and yields closed slightly higher after booked strengthening previously pairing with stronger rupiah on the day. In general, the market recorded very hefty volume with an amount of IDR16.51 trillion, increased drastically from IDR7.28 trillion a day before. Most of funds went to all on-the-run series especially 20-year FR68 and 5-year FR69.
• Market focus was on Indonesian dollar credits on Tuesday, as Indonesian sovereign credits rallied amid heavier transactions, well ahead of July 9 presidential election. Investors favoured longer dated bonds, pushing the prices a tad higher by 1-1.25pts.